|
<br />83- Ou1364
<br />
<br />r
<br />I
<br />
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />
<br />,1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indehtedness evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of and interest
<br />on anj Future Advances secured by this Deed of Trust.
<br />s.. Fuods ior Taxa and. Insunmee. Subject to applicable law or iO a written waiver by LenGer, Borrower shaH pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note. until the Notc i." paid in full.
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Deed of Trust, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and biBs and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lende, if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Deed of Trust that interest on the Funds shall be paid to Borrower. and unless sllch agreement is made or applicable Jaw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shaH give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for wbich each debit to the Funds was made, The Funds are pledged as additional security for the sums secured
<br />by this Deed of Trust.
<br />If the amount of the Funds beld by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shaH not be sufficient to pay taxes. assessments. insurance premiums and ground rents as they fall due.
<br />Borrower shan pay to Lender any amount necessary 10 make up the deficiency within 30 days from the date notice is mailed
<br />by Leuder to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed of Trust. Lender shall promptly refund to Borrowcr any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender. Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Deed of Trust.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied hy Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note. and then to interest and
<br />principal on any Future Advances,
<br />4. Charges; IJens. Borrower shall pay all taxes, assessmenls and other charges, fines and impositions attributable to
<br />the Property which may allain a priority over this Deed of Trust. and leasehold payments or ground rents, if any, in the
<br />manner provided under paragraph 2 hereof or, if not paid in slIch manner, by Borrower making payment. when due, directly
<br />to the payee thereof, Borrower shail promptly furnish to Lcnder all notices of amounts due under this paragraph, and in the
<br />event Borrower shaU make payment directly, Borrower shail promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of Trust; provided. that Borrower shall not be
<br />required to discharge any such Hen so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of sllch lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire. hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided. that Lemler shall not require that tht.:: amount of
<br />slIch coverage exceed that amount of coverage required to pay the sums secured by this Deed of Trust.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld, All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carner and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower,
<br />Unless Lender and Borrower otherwise agree in wri~in.g. insurance proceeds shall be applied to restoration or repair (If
<br />the Property damaged, provided such restoration or repair IS economically feasible and the security of this Deed of Trust i~
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would
<br />be impaired. the insurance proceeds shall be applied to the sums secured by this Deed of Trust, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle :.t claim for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installmeuts referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments, If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and MalDtenance of Property; Leaseholds; Condominiums; Planned Vult Developments, Borrower
<br />shall keep the Property in good repair and shaH not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold, If this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, Borrower shall petform all of Borrower's ohligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Deed of Trust. the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Decd of Trust as if the rider
<br />were apart hereof,
<br />7. PIOIecllon of Lender's Se<:urity. If Borrower fails to perform the covenants and agreements contained in this
<br />Deed of T!U$I, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />jncluding~ but not limited to. eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent. then Lender at Lender's option. upon notice to Borrower, may make such appearances, dishuf'se such
<br />sums and take such action as is necessary to protect Lender's interest. including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mongage insurance as a
<br />condition of making the loan secured by this Deed of Trust, Borruwer shall pay the premiums required to maintain sllch
<br />insu,rance in effect until such time as the requirement for such insurance terminates in accordance with Born.)wer's and
<br />Lender', written agreement or applicable law, Borrower shall pay the amount of all mortgage insurance premiums in the
<br />manner provided under paragraph 2 hereof.
<br />. Any amounts disbursed by Lender pursuant to this paragraph 7. with interest thereon, shail become additional
<br />ondebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, sllch
<br />amount. .hall be payable upon notice from Lende, to Borrower requesting payment thereof, and shall bear interest from the
<br />date of disbursement at the rate payable from time to time on outstanding principal under thc Note unless paymenl of intcrest
<br />at such r~te would be contrary to applicable law, in which eV(,~nt such amounls shall bear interest al the highest rate
<br />permiuible under appiicable law, Nothing contaioed in this parograph 7 shall require Lender to incur any expense or take
<br />any action. b<<wnd!;r,
<br />
<br />a.. l~, tender m-.y m~e oryau5e {n be tn~ rea~nable e~trj~ upon ~lOd mSJX-'C(ions of ~hc Proptnty, provided
<br />tha' 1..en" $ItJ,il.llve Borrower noh-ce Pf1\lf to any stK:h fn"ipecUon spec~fYjfJg rea~(lfiablc C.<lU$e therefor rdated 10 l.....ndtr\
<br />".."rtllIl io tbe Pro..,,,,
<br />
|